March 8, 2011 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) has received assay results from the first 27 holes of the 44 hole preliminary reverse circulation drilling program at its Moule Permit, Burkina Faso, West Africa. Highlights from the first 27 holes include: 4.53 gpt Au over 5 metres (including 10.9 gpt Au over 2 metres) on Drill Transect Line 1 at the Zelingpe 1 target; and on Zelingpe 2 Target 1.82 gpt Au over 5 metres on Drill Transect Line 4, 4.60 gpt Au over 3 metres on Drill Transect Line 5, 3.57 gpt Au over 3 metres on Drill Transect Line 7 and 2.06 gpt Au over 3 metres on Drill Transect Line 8.
Key points are:
Plus one gram intersections over at least one metre were reported in 15 of the 27 holes.
- This is the first ever drill program at Moule.
- Program is a scout drill program testing several targets with broad spaced drill transects; 3 lines at Zelingpe 1, 6 lines at Zelingpe 2 and 3 lines at Vein 3.
- Program has been successful in discovering several new gold zones
The drilling program consisted of a series of drill transect lines across the full width of the three targets. Drill plans and hole by hole details can be found on the Moule current exploration page on the Company’s website at www.indigoexploration.com.
Indigo’s President, Tim Henneberry, said: "We are very pleased that a large percentage of the holes intersected gold mineralization. The scout drilling program has clearly identified areas for follow-up drilling with several holes remaining to be reported. As a result, the Company has arranged to conduct a 15,000 metre drill program commencing in May.
Quality Control and Assurance
All samples were initially analyzed by 50 gram fire assay. The widths and grades reported are drill intercept widths and may not represent the true width of mineralization. Samples are reverse circulation cuttings collected using a cyclone in 1 metre intervals that are riffle split at the drill site. The primary laboratory is ALS Chemex in Ouagadougou, an ISO 17025 certified laboratory. Standard, blank and duplicate samples were inserted throughout the sample sequence as quality control checks. Paul Cowley, P.Geo., director of Indigo, is the qualified person for the drilling campaign.
The Moule Gold Permit covers 249 square kilometres of prospective Birimian greenstone geology. Much of West Africa is underlain by the Birimian Greenstone Belt, one of the most prolific gold producing areas in the world.
Indigo geologists have identified multiple prospective targets for bulk tonnage gold systems, based on the artisanal workings combined with previous sampling programs. To date, there has been property-wide mapping and sampling of quartz veining and quartz float. Efforts have been focused on the 7 kilometre by 6 kilometre Zelingpe area where a soil grid, detailed mapping and local induced polarization (IP) survey have identified multiple linear targets untested by drilling. Rock sampling on this grid returned 46 of 480 grab samples with gold values between 1 g/t Au and 16.5 g/t Au. The December 2010 – January 2011 drilling program tested three of the multiple targets:
- Zelingpe 1, a plus 1 kilometre long chargeability anomaly covered by laterite capping with associated fringe artisanal workings;
- Zelingpe 2, a 500 metre wide northwest trending corridor, traceable for at least 1.6 kilometres, where multiple shear zones and parallel multiple quartz float trends have coincident chargeability, elevated gold soil anomalies and local artisanal workings.
- Vein 3, a 400 metre long artisanal working currently hosting 500 miners that has been traced in excess of 1.5 kilometres by widely spaced soil geochemistry lines.
The Zelingpe grid has several other targets untested by drilling to date. In addition, other kilometre long quartz trends on the property with elevated gold values in soils and rocks and local artisanal workings are worthy of future attention.
Indigo is earning a 100% interest, subject to a 1.5% Net Smelter Return (NSR) royalty in the Moule Gold Permit by making cash payments totaling US$410,000 over 3 years. Indigo retains the right to purchase the entire 1.5% NSR for US$1,800,000.
About Burkina Faso
The Moule property lies in the West African nation of Burkina Faso. Much of West Africa is underlain by the Birimian Greenstone Belt, one of the most prolific gold producing areas in the world. Many of the world’s major gold companies are active in West Africa, several with producing mines, including: IAMGOLD Corporation, AngloGold Ashanti Limited, Randgold Resources Limited, Gold Fields Limited and Newmont Mining Corporation. Burkina Faso is politically and economically stable and relies on farming and mining as it primary sources of revenue. Burkina Faso saw gold production double from 2008 to 2010 and is currently the 5th largest gold producing country in Africa.
On Behalf of the Board of Directors,
“R. Tim Henneberry”
R.Tim Henneberry, P.Geo.
President and CEO
For further information, please contact:
Tim Henneberry: (604) 681-3422
Paul Cowley, P.Geo., Director of Indigo Exploration Inc., is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
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